Ad Ordering System Using Composite Performance and Price Scores
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Advertisers face challenges in maximizing the effectiveness and relevance of online advertisements due to inefficiencies in targeting and revenue generation, leading to wasted ad budgets and user dissatisfaction with irrelevant ads.
Innovation Solution
An advertising system that orders ads based on both price and performance information, using metrics like click-through rates and conversion rates, to prioritize ads that are most relevant and valuable to users, while ensuring advertisers pay for effective ad placement.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Quantity of substance
If ads are ordered based solely on price information, then advertisers pay for placement, but ad relevance and effectiveness deteriorate
Solution Approach 1:
The patent changes the ordering parameter from price alone to a composite score that incorporates both price and performance information. This allows the system to maintain revenue generation while improving ad relevance by weighting performance metrics such as click-through rates and conversion rates into the ordering decision.
Solution Approach 2:
The system uses feedback from performance information (click-through rates, conversion rates) to adjust ad ordering. By continuously monitoring how ads perform and using this feedback to refine ordering decisions, the system achieves both revenue generation and improved relevance over time.
2Reliability
If ads are ordered based solely on performance information, then ad relevance improves, but advertiser revenue generation deteriorates
Solution Approach 1:
The patent modifies the ordering approach by incorporating both performance information and price information into a composite scoring system. This ensures that high-performing ads are prioritized while still accounting for advertiser compensation, thereby maintaining revenue generation alongside improved relevance.
Solution Approach 2:
The system creates a composite ordering score that combines multiple factors (performance metrics and price information) into a single ordering criterion. This composite approach allows the system to balance relevance and revenue generation by weighing different factors appropriately.
3Quantity of substance
If advertisers pay only on click-through, then cost efficiency improves, but incentive to target ads effectively deteriorates
Solution Approach 1:
The system uses performance information feedback (click-through rates, conversion rates) to inform ad ordering and pricing. This creates a feedback loop where advertisers are compensated based on actual performance, incentivizing them to create more effective targeted ads while maintaining cost efficiency.
Solution Approach 2:
The patent changes the pricing model from fixed cost-per-click to a dynamic model that incorporates performance information. This allows the system to adjust advertiser compensation based on actual ad performance, creating better alignment between advertiser incentives and ad effectiveness.
Data Source
AI summary
An ordering of advertisements requested by an ad consumer is based on scores generated for the ads. In each case, a score may be a function of at least one performance parameter associated with the ad and/or a price parameter associated with the ad. The ad consumer may generate presentation information (e.g., a Web page) including advertisements and non-advertisement content (e.g., search results) by (i) accepting the non-advertisement content and advertisements, each of the advertisements including a score, and (ii) combining the non-advertisement content and the advertisements such that relative placements of the advertisements are based on their associated scores.